Chevron Issues Corporate Responsibility Report 2005
SAN RAMON, Calif., April 24, 2006 -- Chevron Corporation invested more than $73 million in community initiatives, deployed a global HIV/AIDS policy and became the largest producer of renewable energy among oil and gas companies, according to the company's Corporate Responsibility Report 2005, issued today.
Chevron's commitment to the communities in which it operates is reflected not only in its community initiatives, but also in the company's response efforts during a year of natural disasters around the world. In 2005, Chevron pledged more than $20 million in immediate and long-term assistance to communities affected by hurricanes along the U.S. Gulf Coast and Central America, the tsunami in South Asia and the earthquake in Pakistan.
"At the core of our corporate responsibility performance are the company's ongoing business investments to develop reliable energy supplies in a safe, environmentally responsible way," said Dave O'Reilly, chairman and CEO of Chevron. "We leverage those investments in a manner intended to create social and economic value in the communities and countries where we operate."
The report provides details on the company's environmental performance and social and economic development initiatives, highlights of which include:
Natural Disaster response: In addition to a pledge of $10 million following an initial $2 million contribution to the South Asia tsunami relief effort, Chevron committed $8 million toward recovery assistance in the aftermath of Hurricanes Katrina and Rita, while fulfilling its primary role of restoring energy supplies. Immediate assistance included 40,000 meals and deliveries of cots, blankets, water and ice to hurricane victims as well as $9 million in employee loans and grants. In Mississippi, Pascagoula Refinery employees restored 39 licensed day-care facilities, which included the complete reconstruction of five centers requiring new furniture, equipment and appliances.
Renewable Energy and Greenhouse Gas (GHG) Emissions: Chevron, the largest renewable energy producer among global oil and gas companies, produced 1,152 megawatts of renewable energy, primarily geothermal, which avoided the generation of 1.88 million tons of GHG emissions (CO2 equivalent). The company also met its goal of no net increase in GHG emissions from its operations compared with 2004, despite the addition of new production capacity and more energy-intensive operating environments.
To help meet its aim of lowering GHG emissions, Chevron established an environmental performance standard to ensure operational excellence in the management of upstream flaring and venting across all operations outside North America. The Sanha Condensate Project in Angola, which became operational in 2005, offers the prospect of reducing Chevron's flaring-related GHG emissions by more than 2 million tons per year. Chevron also maintained its highest-ever level of energy efficiency, and since 1992, the company has reduced its energy consumption per unit of output by 24 percent.
HIV/AIDS Global Policy: Building on long-standing HIV/AIDS efforts, Chevron deployed a companywide HIV/AIDS policy – implemented through 33 regional coordinators – to help address the serious health risk this disease poses for the company's employees, their dependents and their communities. In 2005, Chevron received a Program of Note award from the Global Business Coalition on HIV/AIDS in recognition of the company's efforts to address HIV/AIDS in Angola.
Human Rights: Chevron adopted a human rights statement. The statement reinforces and makes clear the company's commitment to human rights, provides additional guidance to employees and acts as a framework for constructive dialogue.
Independent Performance Recognition: Lloyd's Register Quality Assurance determined that Chevron's management systems for environmental and heath and safety management meet, and in some cases exceed, the ISO 14001 and OHSAS 18001 international standards. Performance recognition also came from inclusion in the Dow Jones Sustainability Indexes for North America and the United States, a placement in the top quartile of the Goldman Sachs Environment, Social and Governance Index, as well as a perfect score on the Human Rights Campaign's 2005 Corporate Equality Index. The Carbon Disclosure Project's Climate Leadership Index also ranked Chevron in the top five energy companies.
Health and Safety: Last year was Chevron's safest year on record for its global operations and marks seven straight years of improvement on overall recordable incidents.
The full Corporate Responsibility Report 2005 is available at www.chevron.com/cr_report/2005.
Chevron Corporation is one of the world's leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on Chevron is available at www.chevron.com.
Published: April 2006